SKS shares up on firefighting

Shares of SKS Microfinance bounced back on Friday after four sessions of consecutive decline, surging by 10% in morning trade on the Bombay Stock Exchange after the company said it has sufficient liquidity for disbursals and bank repayments.

Shares of SKS Microfinance bounced back on Friday after four sessions of consecutive decline, surging by 10% in morning trade on the Bombay Stock Exchange after the company said it has sufficient liquidity for disbursals and bank repayments.

Though the scrip opened on a poor note, it soon rallied into positive terrain after SKS chairman Vikram Akula said the company is well-capitalised and was not as badly impacted by the Andhra Pradesh ordinance reining in MFIs as suggested by some quarters. Boosted by the news, the stock jumped by 9.99% to touch an early high of R704.75 on the BSE.

SKS Microfinance closed the day with a gain of 5.47%.

On Thursday, the company tumbled by 20% to hit the lower limit of R639.45. In the last four trading sessions, the scrip has witnessed a whopping 31% decline.

Akula had said though the Andhra Pradesh ordinance has some impact on MFIs, his company is well-oiled on the back of a strong balance sheet and capital adequacy ratio.